DocuSign Envelope ID: B2173FB8-FA57-4B31-9B0C-27C2115582D3
Open College of the Arts (A company limited by guarantee)
Financial Statements for the year ended 31 July 2022
Charity No. 327446 Company No. 02125674
DocuSign Envelope ID: B2173FB8-FA57-4B31-9B0C-27C2115582D3
Open College of the Arts
Financial Statements for the year ended 31 July 2022
| Contents Strategic Report Details of Board of Trustees Responsibilities and Corporate Governance Statement Independent Auditor’s Report Statement of Comprehensive Income Statement of Changes in Reserves Statement of Financial Position Statement of Cash Flow Statement of Principal Accounting Policies and Estimation Techniques Notes to the Accounts |
Page 2-7 8 9-12 13-16 17 18 19 20 21-23 24-28 |
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Open College of the Arts
Strategic Report
The Board of Trustees, who are also the Directors present the report and accounts on behalf of the Trustees for year ended 31 July 2022 which are also prepared to meet the requirements for a Directors' Report and accounts for Companies Act 2006 purposes.
These financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP): Accounting for Further and Higher Education 2019 and in accordance with Financial Reporting Standards (FRS 102 section 1A). They conform to guidance published by the Office for Students.
In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
The Trustees confirm that:
• so far as they are aware, there is no relevant audit information of which the Company's auditor is unaware, and
• they have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
Purposes and activities for public benefit
The College is a public benefit entity and our students are the College’s primary beneficiaries.
The College Trustees confirm that they have complied with their duty to have due regard to the guidance on public benefit issued by the Charity Commission for England and Wales in exercising their duties and trust that this report, together with the information on the College's website (www.oca.ac.uk) and the work the College does in delivering its objectives, is self-evident of its compliance. The mechanisms for the governance and management of Open College of the Arts (OCA) have been provided to the Office for Students as part of the requirements for registration of the University for the Creative Arts (UCA) Group. Additionally, in June 2017 the Board of Trustees for OCA agreed to operate within the Charity Governance Code, established by the Charity Commission. We do not believe that the College carries out any activities that could harm its beneficiaries and we are not aware of views amongst others that such harm might arise. No serious incidents of material significance were reported in 2021/22.
On 1 November 2016 OCA became a wholly owned subsidiary of UCA. OCA and UCA now wish to pursue different strategic directions which require the divestment of OCA from UCA. On 22 July 2022 UCA entered a legal agreement with the Open University (OU) for the transfer of OCA as a subsidiary organisation which is not effective until the 31 July 2023. The OU will become a member and awarding body for OCA from 1 August 2023. OCA is a charitable company limited by guarantee established in 1987.
OCA adds distance learning and online degrees at undergraduate (UG) and postgraduate (PG) level to UCA’s course portfolio and opens up access to creative arts education at university level to everyone, providing choice and flexibility for students, wherever they are in the UK and beyond. UCA has validated all of OCA’s UG and PG qualifications since 2012. UCA will cease validation of OCA qualifications on 31 July 2023.
OCA’s mission remains “To be at the forefront of student-led creative arts education through innovative open, enhanced, & supported distance learning, for an evolving society.”
OCA has remained resilient in managing the uncertainty and associated risks around the global pandemic. Student enrolment numbers were 26 above target across the 2021/22 academic year. This has ensured OCA continues to have a strong financial base. In 2020 OCA cleared remaining negative reserves and has built reserves ensuring that it meets the financial conditions for going concern.
OCA has performed well against the key indicators and objectives of the 2021/22 Corporate Annual Plan. In particular OCA exceeded the financial target set at the beginning of the year and has increased reserves to £648,290. Completion rates have improved with focus being placed on continuing progression in 2021/22, at
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the end of July the overall completion rate was 55.2%, an increase of 7% from 2020/21. First course completion rates are continuing to show improvement, up 4% on prior year.
Despite the challenges of managing transition to the OU, the College continues to perform well in the National Student Survey (NSS), with 77.42% overall student satisfaction against a sector average of 76%. This is down from the 2021 figures but above 2020 results. Work is underway to assess and improve the College’s offering based on the feedback the College has received from students; and in particular the Creative Arts programme is undergoing an improvement plan in response to feedback received through both the NSS and through an external partner programme review.
Other notable achievements for the 2021/22 academic year include the employment of OCA tutors who were previously self-employed contractors, which ensured improvements in their pay and conditions. This represents the single biggest investment in staffing in OCA’s history. Further improvements to academic terms and conditions of employment will continue into the 2022/23 and 2023/24 academic years. 25% of OCA tutors are now on permanent fractional “Programme Tutor” contracts and this will increase to around 50% by the end of 2022/23.
OCA has successfully completed periodic review of all programmes and the implementation of the new (3x3) curriculum model is well underway. OCA has also managed the regulatory and quality requirement to transfer to the OU. OCA has outsourced services and established or revised fifty-five College policies and procedures. In particular, the quality framework established between OCA and OU required the creation of an independent (and aligned) Quality Assurance processes, handbook, and Academic Board.
Future Plans
OCA is in the process of establishing the next Strategic Plan following the transfer to the OU. The key objectives for 2022/23 are as follows:
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Scaling up and plan for growth, including increases to staffing, support services and outsourcing of services to meet OCA’s strategic direction and the requirements to prepare for transfer to OU for August 2023.
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Establish OCA as leaders for online education for the creative sector. In particular, manage marketing and recruitment to OCA during the transitional period to increase undergraduate enrolments by 15% year-on-year.
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Through critical review of non-accredited, foundation and short course offers, build opportunities for adult reskilling and upskilling in creative industries, reverse the decline in part-time adult education through apprenticeships and vocationally focussed offers, created and managed in partnership with creative businesses (preparing OCA to meet student demand for the Lifelong Loan Entitlement which will be introduced in 2025).
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Have a diverse and global curriculum that is culturally relevant and incorporates social justice pedagogy.
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Critically review and reshape OCA undergraduate curriculum so that it remains attractive and relevant, again based on the outcomes of market research.
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Critically review OCA’s offer for learners in secure environments and build new pathways suited particularly for these students.
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Ensure OCA students are managed and supported through transition, with advice, guidance, and support to change systems and services without adversely impacting on study.
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Provide richer forms of feedback and methods to support learners to ensure that we widen participation in higher level creative education, ensuring equality regardless of financial status, age, disability, race, religion or belief, sex, or sexual orientation.
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Offer technology enhanced creative education through establishing digital studios, digital portfolios and forms of digital assessment that enhance the student learning experience.
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Establish a truly co-constructed learning design process to ensure that the curriculum remains fresh and attractive to new learners.
According to financial and sector forecasts the post pandemic period is expected to remain uncertain until at least 2024, in the UK this is exacerbated by the cost of living crisis and anticipated recession. OCA continues to manage the risks around both the recruitment and retention of students. OCA’s assessment cycles continue to increase in size, so the College is looking to build capacity to scale operations. OCA’s plan and budget sets out a strategy to build reserves, scale and diversify portfolio through short courses and other non-accredited offers to mitigate any loss in grant funding. OCA expects to invest during 2022/23 in staffing and services to
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meet the requirements for future partnership. This investment will result in long term organisational stability and security.
Key performance indicators
Course enrolments and course unit completions are key indicators of the health of the organisation and act as useful performance measures. Enrolments in 2020/21 were exceptional due to learners turning to online provision during the covid pandemic, 2021/22 has seen lower numbers, however it has still been a strong year against the set targets. The completion rates continue to improve year on year.
| KPI | 2021/22 | 2021/22 KPI | 2020/21 |
|---|---|---|---|
| Financial | £150k | £135k | £539k |
| Enrolments | 1,786 | 1,760 | 1,856 |
| Conversion General Campaigns Targeted Campaigns |
(Facebook) 5.37% (direct enquirer conversion) 75% |
>5% >10% |
Not tracked Not tracked |
| Retention Rate (foundations & undergraduate only) First unit completion rate Total completion rate Foundation units HE4 units HE5 units HE6 units |
37% 55% 30% 51% 82% 95% |
35% 51% 30% 50% 70% 84% |
36% 52% 32% 48% 73% 90% |
| Awards (unclassified degrees) | 12.8% | <10% | 9.1% |
| Widening Participation Disabled students Students from BAME background |
30.2% 5.4% |
Minimum 25% Increase by 1.5% |
28.6% 7.9% |
Future Indicators
The indicators for 2022/23 allow OCA to judge the health of the organisation; indicators such as enrolments and completions are all measures the College uses to track performance and demonstrate year on year improvement. The academic indicators on retention and widening participation enable the College to ensure that it is improving the outcomes for the widest demographic, including those who are most disadvantaged. For example, this year OCA will be monitoring areas such as first unit and HE4 retention, BAME attainment, and student mental health and wellbeing and putting in place an action plan to address shortfall in areas of student satisfaction as represented in the National Student Survey results for 2022 or to meet future partner obligations for the OU. The KPI’s are ambitious but realistic given the current economic climate.
Commercial indicators for 2022/23
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Financial - to achieve an annual surplus of £219k
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Enrolments - 1,977 across all provisions
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Conversion - minimum conversion rate of >5% for general campaigns and website enrolment through organic search routes and a conversion rate of >10% for targeted campaigns for specific offers and subjects in specialist media channels.
Academic indicators for 2022/23
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Retention Rate (foundations & undergraduate only) - first unit completion rate of 40%; total completion rate of 53%; 30% for foundation units, 55% for HE4 units, 70% HE5 units and 84% for HE6 units.
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Awards - unclassified degrees to fewer than 10%.
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Widening Participation - maintaining the level of disabled students at 25% (minimum), increase students from BAME background by 1.5%, increasing the number of minority ethnic students submitting for assessment by 5% (to 24%), and increasing the number of BAME students remaining on programme by 5% (to 65%), therefore reducing the attainment gap. (for details see https://www.oca.ac.uk/weareoca/education/addressing-the-gap-what-and-why-are-there-gaps-at-oca)
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Financial review
The College achieved a surplus of £150,205 for the year ended 31 July 2022.
Income
The main source of the College’s income is tuition fees; students have the flexibility to complete their degree course over a number of years and are invoiced for each unit as they commence; an element of income is deferred for units which have not been completed, the method of deferring this income is described within the accounting policy note for Income Recognition. Tuition fee income has increased by 2% year on year. The College receives grant funding via UCA from the Office for Students (OfS) which is used for widening participation activities. The amount of the grant in future will depend on the College’s student numbers and government policy in relation to the funding of higher education.
Expenditure
In the year, the College employed all of its previously self-employed Tutors into a mixture of permanent and flexible roles, this has led to an increase in staffing costs and decrease in operating expenditure. New posts and added capacity were created in the academic and support teams to facilitate increasing workloads and student progression. A consultant was employed to work on the OU transfer project. Staff costs amount to 75.4% of the College’s expenditure; pay to flexible tutors is variable and is dependent upon the number and type of enrolled courses.
Operating costs have been closely monitored throughout the year with savings made wherever possible, significant savings continue to be made from the digitisation of course materials, processes, meetings etc. 15% of the operating costs in year relate to the OU transfer project covering legal fees and expenditure on the project recharged by UCA. The managed office environment which the college moved to in February 2021 has resulted in a 44% reduction in premises costs.
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The College has made use of the OfS grant funding and student enhancement scheme funds to enable it to provide extra learning and support, training and development, student opportunities, hardship support, course and tutor development in year.
Financial Strategy
The College’s Financial Strategy is to maintain its reserves and aim for a resilient financial position that supports the college’s core activities, and which assists its strategic development.
Investment powers and policy
The Trustees have the power to invest (to the extent that there are surpluses available for this purpose). During 2021/22 there were no such investment surpluses.
Going concern
The College achieved a surplus in the year of £150,205 (2021: £539,286) and the Trustees have an agreed budget and Corporate Annual Plan for the forthcoming financial year to maintain the College’s accumulated surplus position. As at 31 July 2022, the College reported an accumulated surplus of £648,290 the College’s largest creditor being a deferred income balance of £691,771 (2021: £654,247). The College is cash positive and is forecast to remain so.
The Trustees have reviewed cashflow forecasts for at least a year from the date of signing the accounts, building on the agreed budget and Corporate Annual Plan for the year ending 31 July 2023. Furthermore, they have reviewed the stress-testing which has been undertaken by management, to consider what might bring the College into a scenario where it no longer is a Going Concern. The key assumption has been the effect on cash resources if income is significantly reduced in the forecast period to 30 November 2023 as a result of severe reductions in student enrolments. Testing has shown that student enrolments would have to decrease by 73% against targets before going concern were to become an issue. In the opinion of the Trustees, such a significant decrease in student enrolments would only occur in the case of external factors beyond our control, such as the funding of courses by student finance being withdrawn. Such circumstances are not considered to be plausible due to OCA’s managed transition from UCA to the OU and, should enrolment numbers decrease, mitigating actions would be taken (which are not included in the stress testing), including maintaining a healthy ratio of funded to self funded students, budget cuts, reassigning core tutoring activities to salaried academic staff, the generation of income through additional revenue streams and the use of accumulated reserves.
Having reviewed the College’s recent performance, the twelve month cashflow forecast to 30 November 2023 and the results of the stress testing, Trustee’s assessment is there are adequate resources for the college to continue in operational existence for at least the next twelve months, for this reason the financial statements have been prepared on a going concern basis.
The College has restricted reserves of £5,115.
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Managing Risks and Uncertainty
Unlike other education providers, students of the College can commence and complete courses to their own timeframe, subject to some maximum limits, rather than within a traditional academic year. Also, the application to enrolment process is much faster, meaning that the College has less time to predict and react to changing enrolment numbers. The College manages the risk of a reduction in enrolment figures by monitoring enrolments daily, preparing statistics on student completion rates, reacting to changes by increasing marketing activity and reducing costs if necessary. The College invests in marketing activities by advertising courses to prospective students who may not be aware of the potential to study in the non-traditional manner. The ongoing Covid-19 pandemic is not anticipated to have a detrimental impact as more students seek distance learning. More of the new enrolments are from younger learners wanting to study at a faster pace, which puts additional pressure on the academic and support services.
There are a number of risks resulting from the cost of living crisis, the ongoing conflict in Ukraine anticipated recession in the UK. These are likely to increase some operational costs, cause more students to leave as a consequence of financial hardship and also put pressure on the organisation in terms of staff and student mental health and wellbeing. OCA has already mitigated some of these risks through moves to a managed services environment, reducing the estate and through raising awareness of the hardship funding available to students.
The other area of risk comes from the management of services through a transitional period for OCA, which is leading to a greater outsourcing of services. The implementation plans provide uncertainty and risk to business, these are detailed in the institutional risk register and include: The implementation of library services and other student services (e.g. management of student finance), staff workloads and impact on business as usual caused by the management of change where risks may include additional costs, reputational damage, a reduction of core services, disruption to business continuity and potentially a reduction to enrolments and an increase in student withdrawals if services are unavailable. In each case the projects require active scrutiny and dynamic risk assessment, with clear escalation processes to ensure that they remain on track to be successful within the required timeframes and budget.
As a long-distance learning College, the quality of the on-line provision is an important factor in the success of students and the College has invested and continues to invest in the student offering to encourage both new enrolments and engagement and re-enrolment from current students. Additionally, the security over the online resources and data held by the College is paramount and the College is supported through a dedicated IT manager and outsourced management of cybersecurity testing and checking, with security arrangements checked by data security experts from our parent organisation.
Approval
This report was approved by the Trustees and signed on their behalf by:
Alan Newton Chair of the Board of Trustees 7th November 2022
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Board of Trustees
Catherine Baxandall Catherine Harper Resigned 5[th] August 2022 Marie-Claire Isaaman Alan Newton John Oliver Harry Rich Resigned 3[rd] November 2021
Company Secretary
Sarah Martin
Principal & Chief Executive Will Woods
Bankers
Barclays Bank plc, 10 Market Street, Bradford, BD1 1EG
Auditors
Internal Auditors: BDO LLP, 55 Baker Street, London, W1U 7EU External Auditors: Grant Thornton UK LLP, 30 Finsbury Square, London, EC2A 1AG
Solicitors
Eversheds LLP, 1 Callaghan Square, Cardiff, CF10 5BT Pinsent Masons LLP, 1 Park Row, Leeds, LS1 5AB
Country of Incorporation England
Registered Office
The Michael Young Arts Centre Room 201 DMC 02 County Way Barnsley Yorkshire England S70 2AG
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Responsibilities and Corporate Governance Statement
Responsibilities of the Board of Trustees
In accordance with the College’s Articles of Association, the Trustees who are also the Directors of the Open College of the Arts are responsible for the administration and management of the affairs of the College.
These responsibilities are set out in OCA’s governing documents:
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Memorandum and Articles of Association;
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Board of Trustees Terms of Reference;
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The Role of Trustee at the Open College of the Arts;
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Code of Practice for Protecting Academic Freedom.
OCA’s objects, powers and framework of governance are set out in its Articles of Association. Its Board of Trustees comprises nine members, all of whom are non-executive.
The Trustees are required to present audited financial statements for each financial year and are responsible for keeping proper accounting records, which disclose with reasonable accuracy, at any time, the financial position of the College and enable it to ensure that the financial statements are prepared in accordance with the Companies Act 2006, FRS102 section 1A and the Statement of Recommended Practice (SORP 2019) “Accounting for Further and Higher Education”. In addition, within the Office for Students (OfS)’ Terms and Conditions of Funding for Higher Education Institutions, the College is required to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the College and of the surplus or deficit and cash flows for that year. The results of the College are consolidated within the UCA group financial statements.
When preparing the financial statements, the Trustees ensure that:
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suitable accounting policies are selected and applied consistently;
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judgements and estimates are made that are reasonable and prudent;
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applicable accounting standards have been followed, subject to any material departure disclosed and explained in the financial statements;
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financial statements are prepared on a going concern basis unless it is inappropriate to presume that the College will continue in operation. The Trustees are satisfied that the College has adequate resources to continue in operation for the foreseeable future: for this reason the going concern basis continues to be adopted in the preparation of the financial statements.
The Trustees have taken reasonable steps to:
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ensure that funds from the OfS are used only for the purposes for which they have been given and in accordance with the OfS’ Terms and Conditions of Funding for Higher Education Institutions and any other conditions which these funding bodies may from time to time prescribe;
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ensure that there are appropriate financial and management controls in place to safeguard public funds and funds from other sources;
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safeguard the assets of the College and the prevention and detection of fraud, bribery and other irregularities;
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secure the economical, efficient and effective management of the College’s resources and expenditure.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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Corporate Governance
Principles and ethos of the College
The College endeavours to conduct its business in accordance with the seven principles identified by the Committee on Standards in Public Life (selflessness, integrity, objectivity, accountability, openness, honesty and leadership), and with the guidance to institutions of higher education which has been provided by the Committee of University Chairs (CUC) in its Higher Education Code of Governance, published in December 2014 and revised in June 2018 . A Register of Interests of Trustees and senior managers is regularly maintained.
Constitution and structural organisation
The Open College of the Arts (OCA) is a wholly owned subsidiary of the UCA as a result of a transfer deed entered into on 1 November 2016. OCA is a charitable company limited by guarantee; as such it is regulated by the Charity Commission for England and Wales. The nature of the relationship between UCA and OCA and the terms on which they provide services to each other are set out in a Service Level Agreement. OCA has its own management and governance arrangements.
The College’s Board of Trustees comprises nine members (5 positions vacant) appointed under the Articles of Association of the College, all of whom are non-executive. Members have a variety of backgrounds and experience from outside traditional HE but share the mission and values of OCA. The Board of Trustees normally meets three times a year, attendance at 2021/22 meetings is shown in the table below:
| Trustee | Trustee Meetings Attended |
|---|---|
| Catherine Baxandall | November, February, June & July |
| Professor Catherine Harper | November & February |
| Marie-Claire Isaaman | - |
| Alan Newton | November, June & July |
| John Oliver | November, February, June & July |
| HarryRich | November |
Amongst its responsibilities it keeps under review the effectiveness of the risk management arrangements and provides an opinion on the adequacy of the management and quality assurance of data submitted to the Higher Education Statistics Agency (HESA), the Student Loans Company, the OfS and other bodies.
The Audit & Risk Committee of UCA oversees the College’s programme of internal audit. The Audit & Risk Committee meets at least four times a year and comprises of lay members of the UCA Board of Governors and a co-opted member, none of whom serves on the Employment & Finance Committee of UCA. The College’s internal and external auditors are in attendance and the members meet the auditors without the officers of the UCA present immediately before each committee meeting. The Committee and the College’s Board of Trustees considers detailed reports from the auditors, which include recommendations for the improvement of the College’s systems of internal control, together with management responses and implementation plans. It also receives and considers guidance from the OfS through the Audit Code of Practice as it affects the College’s business and monitors adherence to the regulatory framework.
Committee considers the annual report for the Prevent Duty and the annual Modern Slavery and Human Trafficking Statement.
The Remuneration and Development Group advises the OCA Board on the remuneration of the holders of senior posts and monitors their performance. In carrying out their responsibilities, each member of the remuneration and development group acts in a way which he or she considers, in good faith, to be most likely to promote the success of the OCA for the benefit of its members as a whole. No individual may participate in deliberations in which their remuneration is being directly discussed or in decisions which directly affect their personal remuneration.
The Trustees and UCA’s Board of Governors are responsible for approving OCA’s strategic direction, and UCA’s Employment & Finance Committee receives financial reports in respect of the College. Reports on OCA risks are received by its Board of Trustees, which provides an annual statement of assurance to the Audit & Risk Committee. There were no internal audits performed in year however, as part of the due diligence process
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for the divestment from UCA and acquisition by the Open University, the OCA has undergone rigorous compliance auditing and checks including CMA compliance, website accessibility compliance, quality assurance (to QAA quality code) and HR compliance. These have led to 55 policy changes, a revised website (including accessibility statements) and the establishment of a Quality Assurance handbook and procedures. These have been completed to the standard required by the HE regulatory bodies and CMA.
UCA approves appointments to the OCA Board of Trustees on the recommendation of UCA Nominations Committee.
Internal control
The Board of Trustees has responsibility for maintaining a sound system of internal control that supports the achievement of policies, aims and objectives, while safeguarding the public and other funds and assets for which it is responsible, in accordance with the responsibilities assigned to the Trustees within the Articles of Association and the OfS’ Terms and Conditions of Funding for Higher Education Institutions.
This system is based on an on-going process designed to identify the principal risks to the achievement of the College’s aims and objectives; to evaluate the likelihood and impact of those risks; and to manage them efficiently, effectively and economically. This process has been in place for the year ended 31 July 2022 and up to the date of approval of the financial statements and accords with OfS guidance.
The key elements of the College's systems of risk management and internal control, which are designed to discharge the responsibilities set out above, include the following:
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oversight of risk management by the Trustees;
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annual review of the College’s Risk Management Policy & Strategy by the Trustees;
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annual review of risk management effectiveness and risk appetite by the UCA Board of Governors;
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the integration of risk management into the annual planning cycle of the College covering all business, operational, financial and compliance risks. This process is informed by detailed annual income, expenditure, capital and cash flow budgets;
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the maintenance of an institutional Risk Register which is updated annually in accordance with the Strategic Plan and assessed on a quarterly basis. The Register includes an evaluation of the likelihood and impact of risks, and identifies mitigation measures;
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clear definitions of the responsibilities and delegated authority of heads of academic and administrative departments including responsibility for identifying and managing operational risks at a departmental level and escalating significant risk to the Trustees;
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regular reviews of key performance indicators and financial results involving variance reporting and updates of forecast out-turns;
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clearly defined and formalised requirements for approval and control of expenditure, with investment decisions involving capital or revenue expenditure being subject to formal detailed appraisal and review by the Trustees.
The system of internal control is designed to manage rather than eliminate the risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness.
The Board of Trustees has responsibility for reviewing the effectiveness of the systems of risk management and internal control. The following processes have been established:
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the Board of Trustees meets at regular intervals to consider the plans and strategic direction of the College;
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the Board of Trustees, through its consideration of the Risk Register at each meeting, provides oversight of the risk management process and requires regular reports from the College’s management on the steps being taken to manage risks, including progress reports on key risks, systems for identifying significant risks facing the College, identifying actions required to minimise risk and regularly evaluating risks, using key risk and performance indicators;
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a professional Internal Audit team, whose annual programme is risk-based and approved by the UCA Audit & Risk Committee, reports regularly to Board of Trustees on specific areas of internal control relating to the College, which include an independent opinion on the adequacy of the effectiveness of the College’s systems of internal control together with recommendations for improvement;
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management makes regular reports and presentations to the Board of Trustees on internal control and risk mitigation actions.
The Trustees’ review of the effectiveness of the system of internal control was informed during the year by the Internal Auditors, BDO LLP, who operate to standards defined in the OfS Audit Code of Practice. The Internal Auditors provide reports to the Board of Trustees following their audits, which provides an independent opinion on the adequacy and effectiveness of the College’s system of internal control with recommendations for improvement. The Board’s review is also informed by the work of the senior managers within the College, who have responsibility for the development and maintenance of the internal control framework, and by comments made by the External Auditors, Grant Thornton UK LLP, in their Management Letter and other reports. In the opinion of Trustees there were no significant internal control weaknesses or failures arising during the year ended 31 July 2022 and up to the date of approval of the financial statements.
Signed _____
Will Woods Principal & Chief Executive
Signed
Alan Newton Chair of the Board of Trustees
7th November 2022
7th November 2022
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Independent auditor's report to the members of Open College of the Arts
Opinion
We have audited the financial statements of Open College of the Arts (the 'charitable company') for the year ended 31 July 2022, which comprise Statement of comprehensive income, Statement of changes in reserves, Statement of financial position, Statement of cash flow and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 July 2022 and of its surplus, income and expenditure, gains and losses, changes in reserves and cash flows for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice and the Statement of Recommended Practice: Accounting for Further and Higher Education published in October 2018; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the ‘Auditor’s responsibilities for the audit of the financial statements’ section of our report. We are independent of the university in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We are responsible for concluding on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.
In our evaluation of the trustees’ conclusions, we considered the inherent risks associated with the university’s business model including effects arising from macro-economic uncertainties, we assessed and challenged the reasonableness of estimates made by the trustees and the related disclosures and analysed how those risks might affect the charitable company’s financial resources or ability to continue operations over the going concern period.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
The responsibilities of the trustees with respect to going concern are described in the ‘Responsibilities of the trustees for the financial statements’ section of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the annual report, set out on pages 2 to 7 other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material
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misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the strategic report and the trustees’ report, prepared for the purposes of company law, included in the annual report for the financial year for which the financial statements are prepared, is consistent with the financial statements; and
-
the strategic report and the trustees’ report included in the annual report have been prepared in accordance with applicable legal requirements.
Matter on which we are required to report under the Companies Act 2006
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the trustees’ report included in the annual report.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of the trustees' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
-
The trustees were not entitled to prepare the financial statements in accordance with the small companies regime.
Responsibilities of trustees for the financial statements
As explained more fully in the Statement of responsibilities of the trustees set out on pages 9-12, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
-
We obtained an understanding of the legal and regulatory frameworks applicable to the charitable company and industry in which it operates through our general commercial and sector experience, discussions with management, inquiries with in-house legal teams and inspection of legal fees and activity. We determined that the following laws and regulations were most significant:
-
- FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’
-
Statement of Recommended Practice (SORP): Accounting for Further and Higher Education 2019
-
Companies Act 2006
-
Charities Act 2011
-
We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by evaluating management’s incentives and opportunities for manipulation of the financial statements. This included the evaluation of the risk of management override of controls. We determined that the principal risks were in relation to:
-
Journal entries that increased income
-
Judgements and assumptions in respect of the calculation of deferred income
-
Our audit procedures involved:
-
Evaluation of the design effectiveness of controls that management has in place to prevent and detect fraud;
-
- Journal entry testing, with a focus on material journals;
-
Detailed testing and challenge of management over the assumptions and judgements made in determining the deferral of income.
-
In addition, we completed audit procedures to conclude on the compliance of disclosures in the financial statements with applicable financial reporting requirements.
-
These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it;
-
Assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team’s:
-
Understanding of, and practical experience with audit engagements of a similar nature and complexity through appropriate training and participation
-
-
Knowledge of the industry in which the client operates
-
Understanding of the legal and regulatory requirements specific to the entity
-
-
Team communications in respect of potential non-compliance with laws and regulations and fraud included the potential fraud in income recognition through the inflation of income
-
In assessing the potential risk of material misstatement, we obtained an understanding of:
-
The charitable company’s operations, including the nature of its income sources and services to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risk of material misstatement; and
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-
The charitable company’s control environment, including:
-
Management’s knowledge of relevant laws and regulations and how the charitable company is complying with those laws and regulations;
-
The adequacy of procedures for authorisation of transactions;
-
Made inquiries to internal audit and reviewed any relevant internal audit reports relevant to the financial year; and
-
Procedures to verify that possible breaches of law and regulations are appropriately resolved.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them it in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Diccon Thornely ACA
Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants London 7th November 2022
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DocuSign Envelope ID: B2173FB8-FA57-4B31-9B0C-27C2115582D3
Statement of Comprehensive Income
For the year ended 31 July 2022
| Note Income Tuition fees and education contracts 1 OfS grants Other operating income 2 TOTAL INCOME Expenditure Staff costs 3 Other operating expenses 4 Depreciation 7 TOTAL EXPENDITURE 5 Loss on disposal of fixed assets Surplus for the year Total comprehensive income for the year Represented by: Restricted comprehensive (deficit) for the year 6 Unrestricted comprehensive income for the year |
2022 £ 2,451,994 160,321 6,036 2,618,351 1,860,976 592,283 14,887 2,468,146 - 150,205 150,205 (2,050) 152,255 150,205 |
2021 £ 2,392,569 192,663 12,384 |
|---|---|---|
| 2,597,616 | ||
| 1,023,209 1,022,761 8,380 |
||
| 2,054,350 | ||
| (3,980) | ||
| 539,286 | ||
| 539,286 | ||
| (1,065) 540,351 |
||
| 539,286 |
The income and expenditure of the Company relates wholly to continuing operations. The notes on pages 21 to 28 form an integral part of these Financial Statements.
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DocuSign Envelope ID: B2173FB8-FA57-4B31-9B0C-27C2115582D3
Statement of Changes in Reserves
For the year ended 31 July 2022
| Note Balance at 1 August 2020 as previously stated surplus/(deficit) (Deficit)/surplus from the income and expenditure statement Balance at 31 July 2021 surplus (Deficit)/surplus from the income and expenditure statement Balance at 31 July 2022 6 |
Income and expenditure reserve Restricted Unrestricted £ £ 8,230 (49,431) (1,065) 540,351 7,165 490,920 (2,050) 152,255 5,115 643,175 |
Total £ |
|---|---|---|
| (41,201) | ||
| 539,286 | ||
| 498,085 150,205 |
||
| 648,290 |
The notes on pages 21 to 28 form an integral part of these Financial Statements.
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DocuSign Envelope ID: B2173FB8-FA57-4B31-9B0C-27C2115582D3
Statement of Financial Position
As at 31 July 2022
| Note Non-current assets Fixed assets 7 Current assets Stock Trade and other receivables 8 Cash and cash equivalents 12 Creditors: amounts falling due within one year 9 Net current assets Provisions: Other provisions 11 Total net assets Restricted reserves Income and expenditure reserve - restricted 6 Unrestricted reserves Income and expenditure reserve - unrestricted Total surplus |
2022 £ 27,687 846 488,932 1,183,270 1,673,048 (1,012,445) 660,603 (40,000) 648,290 5,115 643,175 648,290 |
2021 £ 11,230 1,746 469,909 994,496 |
|---|---|---|
| 1,466,151 (939,296) |
||
| 526,855 (40,000) |
||
| 498,085 | ||
| 7,165 490,920 |
||
| 498,085 |
Total surplus
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements were approved by the Board of Trustees and signed on its behalf on 7th November 2022 by:
Will Woods Principal & Chief Executive
Alan Newton
Chair of the Board of Trustees
The notes on pages 21 to 28 form an integral part of these Financial Statements.
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Statement of Cash Flow
For the year ended 31 July 2022
| Note Cash Flow from operating activities Surplus for the year Adjustments for non-cash items Depreciation Loss on sale of fixed assets Increase in stock Decrease in debtors Increase in creditors Increase in provisions Net cash flow from operating activities Cash flows from investing activities Purchase of fixed assets Proceeds from sales of fixed assets Increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year 12 Cash and cash equivalents at the end of the year 12 |
2022 £ 150,205 14,887 - 900 (19,023) 73,149 - 220,118 (31,344) - 188,774 994,496 1,183,270 |
2021 £ 539,286 8,380 3,980 3,333 (52,033) 85,153 40,000 |
|---|---|---|
| 628,098 | ||
| (9,714) 541 |
||
| 618,926 | ||
| 375,570 994,496 |
The notes on pages 21 to 28 form an integral part of these Financial Statements.
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DocuSign Envelope ID: B2173FB8-FA57-4B31-9B0C-27C2115582D3
Statement of Principal Accounting Policies and Estimation Techniques
1 General Information
Country of registration - England
Registered Office - The Michael Young Arts Centre Room 201, DMC 02, County Way, Barnsley, Yorkshire, England, S70 2AG
2 Basis of Preparation
These financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP): Accounting for Further and Higher Education 2019 and in accordance with Financial Reporting Standards (FRS 102 section 1A). They conform to guidance published by the Office for Students.
The financial statements are prepared in sterling, which is the functional currency of the College.
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements, except as noted below.
3 Basis of Accounting
The financial statements are prepared under the historical cost convention.
4 Going Concern
The College achieved a surplus in the year of £150,205 (2021: £539,286) and the Trustees have an agreed budget and Corporate Annual Plan for the forthcoming financial year to maintain the College’s accumulated surplus position. As at 31 July 2022, the College reported an accumulated surplus of £648,290 the College’s largest creditor being a deferred income balance of £691,771 (2021: £654,247). The College is cash positive and is forecast to remain so.
The Trustees have reviewed cashflow forecasts for at least a year from the date of signing the accounts, building on the agreed budget and Corporate Annual Plan for the year ending 31 July 2023. Furthermore, they have reviewed the stress-testing which has been undertaken by management, to consider what might bring the College into a scenario where it no longer is a Going Concern. The key assumption has been the effect on cash resources if income is significantly reduced in the forecast period to 30 November 2023 as a result of severe reductions in student enrolments. Testing has shown that student enrolments would have to decrease by 73% against targets before going concern were to become an issue. In the opinion of the Trustees, such a significant decrease in student enrolments would only occur in the case of external factors beyond our control, such as the funding of courses by student finance being withdrawn. Such circumstances are not considered to be plausible due to OCA’s managed transition from UCA to the OU and, should enrolment numbers decrease, mitigating actions would be taken (which are not included in the stress testing), including maintaining a healthy ratio of funded to self funded students, budget cuts, reassigning core tutoring activities to salaried academic staff, the generation of income through additional revenue streams and the use of accumulated reserves.
Having reviewed the College’s recent performance, the twelve month cashflow forecast to 30 November 2023 and the results of the stress testing, Trustee’s assessment is there are adequate resources for the college to continue in operational existence for at least the next twelve months, for this reason the financial statements have been prepared on a going concern basis.
The College has restricted reserves of £5,115.
5 Income Recognition
Tuition fee income for foundation and undergraduate students, who benefit from flexible start and end course dates, is credited to the Statement of Comprehensive Income in proportion to the percentage of completion of service provided by the College to the student. In assessing the percentage of completion of the service the College has evaluated the value of the service provided and the expected costs of completing the service. The College is eligible to the income when a student:
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-
enrols and as each course assignment is completed, or
-
withdraws or is withdrawn from the course, or
-
is unable to complete the course as the maximum time allowed has passed.
Tuition fee income from short courses and post graduate courses is recognised over the arranged period of instruction.
Tuition fee income received in advance of performance related conditions being met is carried forward to a future financial year and included in creditors as deferred income.
Where the amount of the tuition fee is reduced, by a refund or discount, income receivable is shown net of the discount.
Income from the sale of goods and services, excluding tuition fee income, is credited to the Statement of Comprehensive Income when the goods or services are supplied to the external customers or the terms of the contract have been satisfied.
Grant funding from OfS is provided to the UCA (who therefore has the immediate risks and rewards) and passed to the OCA where it is recognised as income when the College is entitled to the income and performance related conditions have been met. Although the formal recurrent grant funding from the OfS is provided to the UCA; the proportion passed from the UCA to OCA is based on forecast student numbers and performance conditions include the College providing facilities and carrying on of other activities, which the Trustees consider is necessary or desirable to provide or carry on for the purposes of, or in connection with, education. Income received in advance of performance related conditions being met is recognised as deferred income within creditors on the balance sheet and released to income as the conditions are met.
6 Accounting for Retirement Benefits
The College has a defined contribution pension scheme for employees. The amounts charged are as payable by the College during the period.
7 Employment Benefits
Short term employment benefits such as salaries and compensated absences are recognised as an expense in the year in which the employees render service to the College. Any unused benefits are accrued and measured as the additional amount the College expects to pay as a result of the unused entitlement.
8 Leases
Operating leases
Costs in respect of operating leases are charged on a straight-line basis over the lease term. Any lease premiums or incentives are spread over the minimum lease term.
9 Stocks
Stocks are valued at the lower of cost or net realisable value.
10 Tangible Fixed Assets
Equipment and plant, including computers and software, are capitalised at cost and depreciated over their expected useful life of 5 years for fixtures, fittings and equipment and 3 years for computer equipment on a straight line basis.
Depreciation methods, useful lives and residual values are reviewed at the date of preparation of each Balance Sheet.
11 Cash and Cash Equivalents
Cash includes cash in hand, deposits repayable on demand and overdrafts. Deposits are repayable on demand if in practice they are available within 24 hours without penalty.
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Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash with significant risk of change in value.
12 Provision
Provisions are recognised when:
-
a) The College has a present obligation (legal or constructive) as a result of a past event;
-
b) it is probable that a transfer of economic benefits will be required to settle the obligation; and c) a reliable estimate can be made of the amount of the obligation.
13 Reserves
Reserves are classified as restricted or unrestricted. The College currently has £5,115 in restricted reserves for a small enterprise enhancement scheme which funds progressing students and provides sponsorship of projects.
14 Significant estimates and Judgements
Tuition fee income for foundation and undergraduate students is credited to the Statement of Comprehensive Income once performance conditions have been met. In the College’s judgement performance conditions are met for those students entitled to continue a course based on the course’s terms and conditions to be when a student enrols and as each course assignment is completed. The timing of the release of deferred income is dependent upon student progression which is time flexible. The college has an active study policy to encourage students to engage with and complete course units, for this reason deferred income is shown within ‘Creditors: amounts falling due within one year’.
15 Financial Instruments
The financial assets and liabilities held qualify as basic financial instruments as described in Section 11 of FRS 102. Basic financial instruments, comprising trade debtors, cash and cash equivalents and trade payables, are initially recognised at transaction value and subsequently measured at their settlement value. Cash is held on deposit in Barclays Bank. Trade debtors and trade creditors consist of balances outstanding at the financial year end.
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DocuSign Envelope ID: B2173FB8-FA57-4B31-9B0C-27C2115582D3
Notes to the accounts
1. Tuition fees and education contracts
| UK & EU Higher Education Non-EU Higher Education UK & EU Further Education Non-EU Further Education Short Courses Tuition fees and educational contracts 2. Other operating income Educational Visits and Events Sundry 3. Staff costs Staff Costs: Wages and salaries Social security costs Other pension costs |
2022 £ 2,028,483 254,969 131,931 9,938 26,673 2,451,994 2022 £ 398 5,638 6,036 2022 £ 1,659,138 138,239 63,599 1,860,976 |
2021 £ 2,015,739 189,330 158,600 15,230 13,670 2,392,569 2021 £ 609 11,775 12,384 2021 £ 900,698 81,869 40,642 |
|---|---|---|
| 1,023,209 |
Pension contributions are paid into the Charity’s defined contribution group personal pension plan. The Charity set up a defined contribution pension scheme for employees with effect from 1 April 2016.
| Average staff numbers: Academic Academic Support Central services Total number of staff |
2022 Number 112 19 5 136 |
2021 Number 13 18 4 |
|---|---|---|
| 35 |
Average staff numbers are comprised of a significant number of part time and sessional employees.
There were no higher paid staff in the year (2021: nil).
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Notes to the accounts (Continued)
3. Staff costs (continued)
| Emoluments of the Principal & Chief Executive W Woods from 29 September 2017 Salary Pension |
2022 £ 89,321 4,444 93,765 |
2021 £ 88,001 4,400 |
|---|---|---|
| 92,401 |
The Principal’s pension contributions are on the standard terms of the College’s defined contribution group personal pension plan. No members of staff received employee benefits greater than £100,000.
The Principal and Chief Executive Officer took up office on 29 September 2017, the initial remuneration of £85,000 was increased in August 2018 by the nationally agreed cost of living pay award of 1.7% to the higher education sector and again in August 2019 by 1.8%. No cost of living award was agreed for August 2020 in line with the cost of living freeze for all staff, a 1.5% cost of living increase was approved from August 2021.
In determining the base salary when making the appointment, the Board of Trustees took advice from an external recruitment agency and benchmarked the role with senior management positions within the UCA, as parent company. At the time of appointment, the role was considered equivalent to that of an Executive Dean at UCA, where the salary band was between £83,913 and £100,000. The Principal’s base salary was set within that band. OCA has also contributed 5% of base salary pa to a defined contribution pension scheme. The total remuneration awarded was determined considering the skills and experience that the successful candidate would bring to the post, as evidenced during the selection process.
The Principal’s basic salary is 2.32 (2021: 3.01) times the median pay of staff, where the median pay is calculated on a full-time equivalent basis for the salaries paid by OCA to its staff.
The Principal’s total remuneration is 2.33 (2021: 3.03) times median total remuneration of staff, where the median total remuneration is calculated on a full-time equivalent basis for the total remuneration by OCA of its staff. It is not possible to reliably calculate the full-time equivalent value of course commissioning fees, these have instead been included within total remuneration at actual values paid for the purposes of calculating median pay levels.
Key management personnel
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the College. The Principal & Chief Executive, Director of Learning & Teaching and Director of Curriculum & Quality all have this responsibility.
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Key management personnel | 160,714 | 155,160 |
| Trustees |
No Trustee has received/waived remuneration from the College during the year (2021: – none).
No expenses were paid to or on behalf of Trustees for travelling and subsistence (2021: – none). No other expenses were paid (2021: nil).
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DocuSign Envelope ID: B2173FB8-FA57-4B31-9B0C-27C2115582D3
Notes to the accounts (Continued)
4. Other operating expenses
| Equipment, furniture and computing costs Audit fees (including VAT): Remuneration for external audit services Other expenses Total* |
2022 £ 28,374 16,439 547,470 592,283 |
2021 £ 15,035 15,574 992,152 |
|---|---|---|
| 1,022,761 |
*Reduction due to tutors now being brought on payroll and therefore forming part of staff costs
5. Analysis of expenditure by activity
Academic departments Academic services Administration and central services Premises Depreciation |
Staff costs 2022 2021 £ £ 1,139,806 380,478 487,482 439,928 233,688 202,803 - - 1,860,976 1,023,209 - - 1,860,976 1,023,209 |
Other operating Costs 2022 2021 £ £ 142,325 544,355 164,718 127,437 234,994 238,612 50,246 112,357 592,283 1,022,761 14,887 8,380 607,170 1,031,141 |
Total 2022 2021 £ £ 1,282,131 924,833 652,200 567,365 468,682 441,415 50,246 112,357 2,453,259 2,045,970 14,887 8,380 2,468,146 2,054,350 |
Total 2022 2021 £ £ 1,282,131 924,833 652,200 567,365 468,682 441,415 50,246 112,357 2,453,259 2,045,970 14,887 8,380 2,468,146 2,054,350 |
|---|---|---|---|---|
| 2,045,970 8,380 |
||||
| 2,054,350 |
6. Restricted reserves
| 6. Restricted reserves | ||
|---|---|---|
| At 01 August 2021 Expenditure Total restricted comprehensive (expenditure)/income At 31 July 2022 |
2022 £ 7,165 (2,050) (2,050) 5,115 |
2021 £ 8,230 (1,065) (1,065) |
| 7,165 |
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DocuSign Envelope ID: B2173FB8-FA57-4B31-9B0C-27C2115582D3
Notes to the accounts (Continued)
7. Fixed assets
| Cost At 1 August 2021 Additions at cost At 31 July 2022 Depreciation At 1 August 2021 Charge for year At 31 July 2022 Net book value at 31 July 2022 Net book value at 31 July 2021 8. Trade and other receivables Amounts falling due within one year: Trade receivables Prepayments and accrued income Other debtors 9. Creditors Amounts falling due within one year: Trade creditors Amount owed to group undertakings Other tax payable & social security Accruals Other creditors Deferred income |
Fixtures & Fittings £ 16,946 754 |
Computer Equipment £ 9,681 30,590 |
Total £ 26,627 31,344 57,971 15,397 14,887 30,284 27,687 11,230 2021 £ 437,940 28,474 3,495 |
|---|---|---|---|
| 17,700 | 40,271 | ||
| 7,812 3,387 |
7,585 11,500 |
||
| 11,199 | 19,085 | ||
| 6,501 | 21,186 | ||
| 9,134 | 2,096 | ||
| 2022 £ 447,244 37,196 4,492 488,932 2022 £ 42,018 43,400 47,594 175,494 12,168 691,771 1,012,445 |
|||
| 469,909 | |||
| 2021 £ 49,236 41,129 24,816 165,186 4,682 654,247 |
|||
| 939,296 |
Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
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DocuSign Envelope ID: B2173FB8-FA57-4B31-9B0C-27C2115582D3
Notes to the accounts (Continued)
10. Lease Obligations
At 31 July 2022, the Charity had total future minimum lease payments in respect of property under noncancellable operating leases payable as follows:
| Within one year 11. Provisions for liabilities and charges Dilapidations 12. Cash and cash equivalents Cash at bank Cash in hand 13. Analysis of changes in net debt Cash at bank and in hand |
At 31 July 2021 £ |
2022 £ 3,495 3,495 2022 £ 40,000 40,000 2022 £ 1,183,263 7 1,183,270 Net cash flows £ |
2021 £ 20,967 20,967 2021 £ 40,000 40,000 2021 £ 994,475 21 994,496 At 31 July 2022 £ |
|---|---|---|---|
| 994,496 | 188,774 | 1,183,270 |
14. Related Party Transactions
The College has made enquires with the Trustees and senior staff and there are no Related Party Transactions to report, Trustee expenses are disclosed in note 3.
The College has taken advantage of the exemption offered by FRS 102 (section 33) in respect of transactions and balances between it and the University for the Creative Arts, as it is a wholly owned subsidiary of the University for the Creative Arts, UCA Farnham, Falkner Road, Farnham, Surrey, GU9 7DS. The college is consolidated in the accounts of UCA and those accounts are publicly available.
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